Against the backdrop of the coronavirus pandemic and the resulting economic slowdown, the Russian authorities wanted to spend more on recovery, write “Vedomosti”. To this end, the Ministry of Finance proposes to increase borrowing and soften the budget rule limiting budget expenditures.
Measures to increase budget expenditures are detailed in the appeal of the Deputy Minister of Economic Development Polina Kryuchkova to the government apparatus, which the publication refers to.
Among them is an increase in the forecasted level of budget revenues for the next three years, which will be possible due to a more significant GDP growth in comparison with the current planned values. The Ministry of Economic Development expects budget receipts at the level of 23.5, 24.6 and 25.8 trillion rubles in 2022-2024, which is a total of 2.4 trillion more than the current targets.
In addition, it is proposed to soften the parameters of the budget rule introduced in 2017 to reduce dependence on commodity exports. According to him, oil and gas surplus profits when oil prices are higher than the forecasted ones are sent to the National Welfare Fund (NWF) and cannot be used for current purposes.
In particular, in the opinion of the Ministry of Economic Development and Trade, the indicator of the structural primary budget deficit should be increased (defined as the difference between the allowable budgetary rule and real expenditures). According to the current plan, next year it should be equal to 585 billion rubles, but the department proposes to increase it to 1.46 trillion, like this year.